The Law of Extension

The Law of Extension

Hey everyone, welcome to Digital Branding with LEAD, where we bring you valuable information, tips, and opportunities to assist you in building your brand. Today’s topic in relation to digital branding is, “the law of extensions.”

We are going to start this video off with a question. Now, when your customers are not exactly rushing out to buy your product, why would you need more brands to satisfy those customers?

Think about it. We have clients and business owners all the time seeking to expand their brands without ensuring that they have a winning product or service. Logic suggests you would need fewer brands.

When engaging in line extensions seeking to expand your brand and command more of the market, you run the risk of eroding the core brand. Many companies create a new service or product looking into increase sales in the company but fail to calculate the impact that can have on the core product or service that formed the core and foundation of your company and its brand.

In this chapter of the 22 Immutable Laws of Branding, it states that “One reason 90 percent of all new brands are line extensions is that management measures result with the wrong end of the ruler. It measures only the success of the extension. It never measures the erosion of the core brand.”

Many manufacturers are their own worst enemies. For example, what does a line extension like Coors Light tell you about the original Coors beer that is on the market?

That the regular product is not good for you. That’s what we think as consumers when someone adds words like light, clear, healthy, and fat-free to their original product names.

Like Heinz Light Ketchup? Do you suppose that this leads customers to draw the conclusion that ketchup is loaded with calories? Or we’ll say that ketchup isn’t good for you, grab the one that says light. Same thing.

You do not want to erode your core brand, service and/or product because you are following trends and other developments in the market. Remember the law of contraction. It is better to narrow your focus.

Before you launch your next line extension, ask yourself what customers of your current brand will think when they see the line extension. If the market is moving out from under you, stay where you are and launch a second brand. If it’s not, stay where you are and continue building your core brand.

That’s all we have today on Digital Branding with LEAD. Remember with LEAD it is all about turning your business into a leading brand. Make sure you visit to book a consultation with us and learn how you can grow your brand within the digital world today.